South Africa’s second operator MTN has revoked its SMS termination services from WBS, parent company of internet provider iBurst, following the company’s failure to pay the operator.
MTN said it ceased to transmit SMS messages coming from the WBS/iBurst network on June 6, following the refusal of WBS to make payment for the transmission and termination services.
“Though there is no binding agreement between the parties, MTN continued to transmit and terminate SMSs originating from WBS/iBurst on MTN’s network,” said Fusi Mokoena, general manager at MTN South Africa’s commercial department’s legal team.
“However, WBS/iBurst refused to pay MTN for such services. As a result, MTN terminated services to WBS/iBurst as it has no legal obligation to render such services and in particular, where such services are not being paid for.”
In response, WBS launched legal action against MTN which was argued in the South Gauteng High Court in Johannesburg last week, but the case was dismissed by the court, the operator said.
“The case was dismissed with costs. This means that we are not obliged to terminate any iBurst SMSes on our network, including person-to-person SMSes. The judge ruled that the “Sender Keeps All” was not binding as it does not comply with the Interconnection Agreement,” MTN said.
HumanIPO reported in May South Africa’s leading operator Vodacom also cut bulk SMS termination services from WBS following the company’s refusal to make payment.
In that case, an application for an urgent interdict compelling Vodacom to reinstate services was thrown out by the court, although HumanIPO understands WBS may continue a further legal challenge.
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